ECN 211 MIDTERM 1 2026 FINAL REVIEW PACK
COMPLETE QUESTION SET AND CORE
CONCEPT SUMMARY
◉ the equation Y = C + I + G + NX represents ___. Answer: economy's
total expenditure (spending)
◉ C stands for. Answer: consumption
◉ I stands for. Answer: investors/investments
◉ G stands for. Answer: government spending
◉ NX stands for. Answer: net exports
◉ nominal GDP is ____ (hint: "name value"). Answer: not adjustied
for inflation (uses current prices)
◉ real GDP is ___ (hint: "real value"). Answer: adjusted for inflation
(shows true output)
◉ net exports (NX) = ___ - ___. Answer: exports; imports
,◉ CPI is used to ___ over time. Answer: monitor changes in the cost
of living
◉ CPI indexation refers to ___. Answer: adjusting money for inflation
/ money automatically increases to keep up with rising prices
◉ to be counted as unemployed, a person must be ___ and ___.
Answer: available for work; actively seeking work
◉ the labor-force participation rate measures the fraction of the
population that is ___. Answer: participating in the labor market
◉ ___ unemployment occurs when people are searching for jobs
(within their skill set). Answer: frictional
◉ natural rate of unemployment includes ___ and ___ unemployment.
Answer: frictional; structural
◉ wages set above equilibrium to increase productivity are called ___
wages. Answer: efficiency
◉ productivity is measured by ___. Answer: output per hour worked
(how much a worker produces in one hour)
, ◉ intermediate goods are ___. Answer: used to produce another good
◉ final goods are ___. Answer: ready for sale
◉ the expenditure approach measures GDP by ___. Answer: total
spending
◉ GDP can be calculated using the formula ___. Answer: C + I + G + (X
- M)
◉ industrial machinery is an example of ___ capital. Answer: physical
◉ inflation rate is the percent change in the ___. Answer: price level
from the previous period
◉ cyclical unemployment is associated with ___ and ___. Answer:
booms; recessions
◉ 5 problems with GDP (GDP does NOT equal quality of life).
Answer: 1. Nonmarket transactions (things people do without
getting paid; i.e. cooking at home/babysitting sibling)
COMPLETE QUESTION SET AND CORE
CONCEPT SUMMARY
◉ the equation Y = C + I + G + NX represents ___. Answer: economy's
total expenditure (spending)
◉ C stands for. Answer: consumption
◉ I stands for. Answer: investors/investments
◉ G stands for. Answer: government spending
◉ NX stands for. Answer: net exports
◉ nominal GDP is ____ (hint: "name value"). Answer: not adjustied
for inflation (uses current prices)
◉ real GDP is ___ (hint: "real value"). Answer: adjusted for inflation
(shows true output)
◉ net exports (NX) = ___ - ___. Answer: exports; imports
,◉ CPI is used to ___ over time. Answer: monitor changes in the cost
of living
◉ CPI indexation refers to ___. Answer: adjusting money for inflation
/ money automatically increases to keep up with rising prices
◉ to be counted as unemployed, a person must be ___ and ___.
Answer: available for work; actively seeking work
◉ the labor-force participation rate measures the fraction of the
population that is ___. Answer: participating in the labor market
◉ ___ unemployment occurs when people are searching for jobs
(within their skill set). Answer: frictional
◉ natural rate of unemployment includes ___ and ___ unemployment.
Answer: frictional; structural
◉ wages set above equilibrium to increase productivity are called ___
wages. Answer: efficiency
◉ productivity is measured by ___. Answer: output per hour worked
(how much a worker produces in one hour)
, ◉ intermediate goods are ___. Answer: used to produce another good
◉ final goods are ___. Answer: ready for sale
◉ the expenditure approach measures GDP by ___. Answer: total
spending
◉ GDP can be calculated using the formula ___. Answer: C + I + G + (X
- M)
◉ industrial machinery is an example of ___ capital. Answer: physical
◉ inflation rate is the percent change in the ___. Answer: price level
from the previous period
◉ cyclical unemployment is associated with ___ and ___. Answer:
booms; recessions
◉ 5 problems with GDP (GDP does NOT equal quality of life).
Answer: 1. Nonmarket transactions (things people do without
getting paid; i.e. cooking at home/babysitting sibling)
